Question
According to this chart and paragraph, please make a final conclusion as to the most appropriate course of action to follow. Being a financial advisor
- According to this chart and paragraph, please make a final conclusion as to the most appropriate course of action to follow.
Being a financial advisor at RedHat International, we've been asked to offer guidance on two capital investment alternatives by the shipping department to automate warehouses based on two robotics systems-systems A and B. System A and B will cost $ 2, 500, 000 and $ 4,000,000 respectively with both requiring a CCA rate of 30%. Their capitalization requires $50, 000 at zero rate and an additional $10,000 in the net capital annually. An outside consultant is to be hired at a cost of $10,000 and a charge of $150 per hour for 50 hours annually be paid by the manufacturing department as a measure to recover part of the development cost. The company policy of minimum rate is at 18% for all projects and a corporate tax of 26%.
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